Oceaneering International, Inc. (NYSE:OII) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET

Company Participants

Mark Peterson - VP, Corporate Development & IR

Roderick Larson - President, CEO & Director

Alan Curtis - SVP & CFO

Conference Call Participants

James Schumm - Cowen and Company

Kay Hoh - Evercore ISI

Sungeun Kim - Barclays Bank

Operator

Good morning. My name is Joanna, and I will be your conference operator. Welcome, everyone, to Oceaneering's 2022 Third Quarter Earnings Conference Call. [Operator Instructions].

With that, I will now turn the call over to Mark Peterson, Oceaneering's Vice President of Corporate Development and Investor Relations.

Mark Peterson

Thanks, Joanna. Good morning, and welcome to Oceaneering's Third Quarter 2022 Results Conference Call. Today's call is being webcast, and a replay will be available on Oceaneering's website.

Joining us on the call today are Rod Larson, President and Chief Executive Officer, who will be providing our prepared comments; and Alan Curtis, Senior Vice President and Chief Financial Officer.

Before we begin, I would just like to remind participants that statements we make during the course of this call regarding our future financial performance, business strategy, plans for future operations and industry conditions are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our third quarter press release. We welcome your questions after the prepared statements.

I will now turn the call over to Rod.

Roderick Larson

Thanks, Mark. Good morning, everyone, and thanks for joining the call today. As is our custom at this time of the year, we're happy to be providing you with our initial thoughts on Oceaneering's 2023 outlook. As announced yesterday, we are initiating 2023 EBITDA guidance in the range of $260 million to $310 million. At the midpoint, this would represent a 25% increase over $227.5 million, which is the midpoint of our revised adjusted EBITDA guidance for 2022.

We're confident in our ability to deliver this solid improvement in 2023 based on supportive commodity prices and supply and demand fundamentals in our traditional energy businesses despite current global economic headwinds; increasing demand for our services and products in offshore renewable markets; expectations for modest growth in our Aerospace and Defense Technologies segment; emerging opportunities for our mobile robotics businesses; and increasing backlog as evidenced by our third quarter order intake of slightly more than $700 million. These fundamentals also underpin our expectation to generate $100 million of free cash flow in 2023.